Home for the holidays: Rosen family compromise likely at Azure Paradise Valley

Cori and Vic Rosen at Paradise Valley Town Hall, 6401 E. Lincoln Drive, moments before what appears to be a compromise for the family to be home for the hoidays in the Town of Paradise Valley. (Independent Newsmedia/Terrance Thornton)

WRITE TO REPLY: Read Five Star Development’s response to this article here.

It appears there is a very good chance the Rosen family will be home for the holidays.

Cori and Vic Rosen purchased what they call their, “dream home” at Azure Paradise Valley, which is the first Shea Signature luxury community in the Town of Paradise Valley.

The only problem: Azure Paradise Valley is apart of the forthcoming Ritz-Carlton resort community and embedded within the development agreement between municipality and developer are certain thresholds meant to ensure a hotel is, in fact, built on the site.

A view of the Shea Signature community in the Town of Paradise Valley, which is apart of the Paradise Valley Ritz-Carlton resort community. (Independent Newsmedia/Arianna Grainey)

The Paradise Valley special-use permit — approved by a 4 to 3 vote in early 2016 — entitles Scottsdale-based Five Star Development, through an investment of $130 million, to build a Ritz-Carlton-branded resort on more than 100 acres an arrow’s shot from the intersection of Scottsdale Road and Lincoln Drive.

Oftentimes these luxury resort developments come with accompanying residential stock, town officials say, and are governed by a development agreement, which is the nuts and bolts of how revenue will flow to both the municipality in forms of bed-tax remits and the property owner as homes are built, financed and sold.

At the Ritz-Carlton Paradise Valley Resort Community, and its subsequent Azure Paradise Valley luxury subdivision, a road referred to as the “Spine Road,” which will be an internal arterial between Indian Bend and Quail Run roads within the project limits, must be completed before a certificate of occupancy can be granted for the residential stock.

“We were shocked to find out we are in a political football game so to speak and we don’t know why the town won’t allow us to move in?” said Cori Rosen, a Paradise Valley resident.

The matter of issue: the pursuit of certificate of occupancy, which allows the Rosen family to move into their new home on the Ritz-Carlton project property and allows the note of the homes to be recorded.

“Well, the town won’t issue a certificate of occupancy,” Ms. Rosen said of the tenets of a development agreement between Five Star and the town. “They say that the road between Indian Bend south to Lincoln needs to be complete. Even though the road when complete won’t even be used because it is in the middle of a construction site.”

Ms. Rosen says the home is to be completed Dec. 18.

The development entitlements granted to Five Star Development for the creation of a Ritz-Carlton Paradise Valley resort community are broken into seven development-area characteristics:

  • Area A: 200-room resort on 18.1 acres.
  • Area A1: 94 resort-branded villas.
  • Area B: 66 single-family homes on 31.3 acres.
  • Area C: 39 resort-branded, single-family homes on 17.2 acres.
  • Area D: 53 townhomes on 8.8 acres.
  • Area E1: A 54,000 square-foot luxury retail center on 7.2 acres.
  • Area E2: Influx design as the use of 5.7 acres is yet to be determined.

Most recently, Paradise Valley Town Council unanimously approved an amended final plat for Area C, 39 lots on 17.2 acres. Original plans called for 45 homes on 22.5 acres.

In addition to Paradise Valley entitlements, Five Star Development also has been granted zoning standards for the project on land that extends into neighboring Scottsdale.

The Town of Paradise Valley is allowing a 24-hour construction work schedule at the forthcoming Ritz-Carlton development. (Independent Newsmedia/Arianna Grainey)

Five Star Development sold 23 acres of land to Shea Homes within the Ritz-Carlton community in Paradise Valley and the city of Scottsdale has approved a new shopping center coined “The Palmeraie” that will, in part, encompass 20 acres of land adjacent to the forthcoming Ritz-Carlton resort community.

The new shopping center got the go-ahead by a unanimous vote from Scottsdale City Council in March 2017. The city approved the rezoning of a 20-acre site at 6990 N. Scottsdale Road from resort/townhouse residential to planned regional center.

In all, Scottsdale City Council approved three different measures for the zoning change with one being a $408,000 contribution to the municipality from Five Star Development for the city to use to assist in constructing and maintaining the city’s drainage system.

The approved measures will allow for a mixed-use development that can consist of 141 residential units in 170,000 square feet, a maximum of 150 hotel units on 134,000 square feet, 226,000 square feet of commercial space and 80,000 square feet of office space, city officials say.

A view of a model outlining how the Paradise Valley Ritz-Carlton will ultimately be developed. (File photo)

A potential solution

Aware of the Rosen family concern, Paradise Valley Town Council hosted a study session discussion Thursday, Nov. 15 were the current ins and outs of the resort behemoth were prefaced.

Following an overview of the current state of affairs at the Ritz-Carlton site, the Town Council went into executive session, and appeared willing to find a special circumstance for the Rosen family to move into their new home.

“The town recognizes there is a conflict of occasion by delay by two private companies,” said Brian Dalke, who is serving as interim Paradise Valley town manager.

“This delay is potentially impacting the ability for the Rosens to achieve a Certificate of Occupancy for their new home. Therefore, the town would like to continue to try to facilitate a mutually agreeable path forward. We understand that time is of the essence.”

A view of ongoing construction at of the Paradise Valley Ritz-Carlton resort community due for its public debut in late 2018. (File photo)

Jordan Rose of the Rose Law Group, which is the firm representing Shea Homes in this matter, says Town Council is seeking to serve its residents.

“The Town Council just saved Christmas!” she proclaimed.

“Shea is thankful for the leadership of the Town Council in directing that the residents be allowed to move into their beautiful homes for the holidays.”

Paradise Valley Mayor Michael Collins says he has empathy for the situation

 

CORRECTION: An earlier version of this story misquoted Michael Collins, mayor of Paradise Valley. His comments should have read:

We are about a year (behind on schedule) in this due to the delays with (the Ritz-Carlton Project),” he said of the extension of the construction timeline. “We have really held this project for two years (waiting on) Five Star (to show enough progress on their project)…

Mr. Collins asked town officials if they still believe a hotel will be built.

Paradise Valley Town Attorney Andrew Miller replied, “As of late the progress has been substantial — I would say they are working towards that.”

Furthermore, Paradise Valley Vice Mayor Jerry Bien-Willner asked to be reminded of certain stipulations meant to corral the possibility of a hotel not being built.

“Can you remind us if there is anything in the development agreement that keeps it on track?” he asked of Mr. Miller. “The plan, the minor amendment to reconfigure the hotel is approved. So, they will be submitting the hotel plans at-risk?”

Mr. Miller confirmed that is the case.

“For the developer to make their money they had to sell those homes,” Mr. Miller said of the Spine Road linchpin within the development agreement. “Now, we have seen three different amendments to the hotel to get what they need, I think that has been the reason for some of the delays.”

Northeast Valley Managing Editor Terrance Thornton can be contacted at tthornton@newszap.com

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